EUR/GBP is hitting resistance near a key area of interest!
Will the pair turn lower and extend its month-long downtrend?
Or will enough bulls show up to force an upside breakout?
EUR/GBP 4-hour Forex Chart by TradingView
A delay in new U.S. tariffs boosted demand for European currencies last week, but lingering uncertainty over the “Liberation Day” tariffs kept investor optimism in check.
With the European Central Bank (ECB) expected to cut interest rates this week, the euro could stay under pressure against other majors. This week’s FX Fundies Cheat Sheet suggests the British pound could see relatively higher bullish demand.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/GBP has been making lower highs and lower lows since sliding from the .8725 highs in mid-April. Last week, the pair bounced from the .8350 area and is now trading near .8425.
Bears could step back in soon, with .8425 sitting close to the 100 SMA on the 4-hour chart and the R1 Pivot Point at .8456.
This area also lines up with the top of an ascending channel that has been intact since late April.
If bearish pressure kicks in, EUR/GBP could slip back toward the .8350 lows or even the S2 Pivot Point at .8323.
However, a break above the channel top and R1 resistance could open the door for a retest of the 200 SMA and the .8500 previous resistance zone.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
